2013 Annual Results Announcement · 3 alpha2014\Presentations to client\2014-03-17 2013 Results Announcement\EN_2013年度业绩推介- Revised.pptx Financial Summary (1): Balance

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alpha2014\Presentations to client\2014-03-17 2013 Results Announcement\EN_2013年度业绩推介 - Revised.pptx

March 2014

2013 Annual Results Announcement

IFRS

Beijing / Hong Kong

1


Disclaimer

No information contained in this material constitutes any offer of, or any invitation for the purchase or

subscription of, the securities of Agricultural Bank of China (“the Company”) in Hong Kong, the United States

and other regions. The securities of the Company have not been registered in accordance with the U.S.A.

Securities Act of 1933 and its amendments, and cannot be offered or sold in the United States, except that they

have been duly registered, or exempted from registration, according to applicable laws.

This material contains “forward-looking statements” as defined under Section 27A of the U.S.A. Securities Act

of 1933, as amended, and Section 21E of the U.S.A. Securities Exchange Act of 1934, as amended. Such

forward-looking statements involve known or unknown risks, uncertainties and other factors, and have been

made based on the Company’s anticipation, assumption, estimate and forecast of the industry in which it

operates. Unless law provides otherwise, the Company undertakes no obligation to update the aforesaid

forward-looking statements so as to reflect the latest events or situations, or alter its estimates accordingly.

Though the Company believes that the estimates in such forward-looking statements are reasonable, it does

not guarantee that these estimates will prove to be correct in the future. The investors should understand that

the actual outcomes may be different from the forecast results.

1

2


Results Overview

Financial Performance

Business Development

County Area Banking Business

Future Outlook

2

3


Financial Summary (1): Balance Sheet Indicators

December 31, 2013Unit: RMB 100 million December 31, 2012

Total assets

Total loans and advances

Total liabilities

Total deposits

Shareholder’s equity

Core capital adequacy ratio (by the old rule)

Total capital adequacy ratio (by the old rule)

3

Non-performing loan (NPL) ratio

Allowance to NPL ratio

Allowance to Total Loan ratio

Tier-1 capital adequacy ratio (by the new rule)

Total capital adequacy ratio (by the new rule)

Note: The new rule refers to the Capital Rules for Commercial Banks (Provisional), and the old rule refers to the Rules for

the Management of Capital Adequacy Ratio of Commercial Banks.

145,621

72,247

137,176

118,114

8,445

9.81%

12.57%

1.22%

367.04%

4.46%

9.25%

11.86%

132,443

64,334

124,930

108,629

7,514

9.67%

12.61%

Not applicable

Not applicable

1.33%

326.14%

4.35%

9.9%

12.3%

9.8%

8.7%

12.4%

0.14 pps

0.04 pps

0.11 pps

40.9 pps

0.11 pps

4


Financial Summary (2): Income Statement and Profitability

Indicators

Net interest income

Net fees and commission income

Operating income

Profit before tax

Net profit

EPS (RMB yuan)

Net interest margin (NIM)

Cost-to-income ratio

Return on Average Assets (ROAA)

Weighted Average Return on Equity

Unit: RMB 100 million December 31, 2013

4

December 31, 2012

3,419

748

4,250

1,879

1,451

0.45

2.81%

36.76%

1.16%

20.74%

3,762

832

4,658

2,142

1,662

0.51

2.79%

36.30%

1.20%

20.89%

10.0%

11.1%

9.6%

14.0%

14.5%

13.3%

0.02 pps

0.46 pps

0.04 pps

0.15 pps

5


Results Overview




Future Outlook

5

6


Loan Business: Steady Growth in Total Loans with Continuous

Optimization of Loan Structure

Steady Growth of Loan Balance

Unit: RMB 100 million

Increasing Share of Retail Loans


6

14,30517,073

20,933

25.4%26.5%

29.0%

2011 2012 2013Total retail loans As % of total loans

Rapid Growth of Loans to SMEs


Moderate Increase in Share of Mid- to

Long-Term Corporate Loans


22,906 23,754

25,875

57.4%53.6% 54.7%

2011 2012 2013Total mid- to long-term corporate loans

As % of corporate loans

56,399 64,33472,247

2011 2012 2013

4,786

6,562

8,133

2011 2012 2013

7


Deposit Business: Stable Deposit Structure

7

Steady Growth of Deposit Balance


Stable Share of Demand Deposits

Stable Share of Personal Deposits

96,220

108,629

118,114

2011 2012 2013

54.6% 54.8%

52.1%

53.5%54.6%

2012 2013Q1 2013H1 2013Q3 2013

59.1% 59.6%58.8% 59.0% 58.6%

2012 2013Q1 2013H1 2013Q3 2013

Note: the data includes domestic and overseas demand deposits

8


Deposit Business: Proved Low Cost Advantages

Sustained Growth in Average Daily

DepositsUnit: RMB 100 million

Stable Decline in Interest Rate of

Deposit

8

91,875

101,624

111,708

2011 2012 2013

1.84%

1.75% 1.75% 1.75%1.74%

2012 2013Q1 2013H1 2013Q3 2013

9


Financial Market Business: Continuous Optimization of Bond

Portfolio with Increased Investment Returns

Steady Enhancement in Investment

Returns on Non-Restructuring Bonds

9

20,227 22,349

25,331

3.41%

3.80% 3.86%

2011 2012 2013

Total investment in non-restructuring bonds

Investment return

Increasing Share of Policy Bank Bonds

6,477

10,016

12,377

32.0%

44.8%

48.9%

2011 2012 2013

Total policy bank bondsAs % of non-restructuring bonds

Unit: RMB 100 millionUnit: RMB 100 million

Increasing Share of Corporate Bonds

2,305 3,095

3,896

11.4% 13.8%15.4%

2011 2012 2013

Total corporate bonds

As % of non-restructuring bonds


10


Electronic Banking Business: Constantly Improve Standards

of E-Services and Consolidate the Channel Advantage

Growing Number of Customers

38,658

9,027 9,001 5,685

51,200

11,343 11,815 8,297

Electronic banking

Online banking

Telephone banking

Mobile banking

2012 2013

Steady Increase in Percentage of

Business Replaced by Electronic BankingCustomers in ’0000

Growing Transaction Volume

1,526,7001,269,000

7424,211

2,012,600

1,702,000

630

15,473

Electronic banking

Online banking

Telephone banking

Mobile banking

2012 2013


10

62.6%

67.8%

72.6%

2011 2012 2013

11


Results Overview


Future Outlook

11



12


Profitability: Steady Growth in Net Profit and Continuous

Improvement of Shareholder Returns

Net Profit


12

ROAA

ROAE

1,220

1,451

1,662

2011 2012 2013

1.11%

1.16%1.20%

2011 2012 2013

20.46%

20.74%20.89%

2011 2012 2013

13


Profitability: Continuous Strengths in Pricing Power

Net Interest Margin (NIM)

13

Yields on Interest-Bearing Assets

Cost Rate on Interest-bearing Liabilities

2.81%

2.78%

2.74%

2.75%

2.79%

2012 2013Q1 2013H1 2013Q3 2013

4.39%

4.66% 4.56%

2011 2012 2013

1.66%

1.99% 1.91%

2011 2012 2013

14


Intermediary Business: Steady Growth in Net Fee and

Commission Income

Net Fee and Commission IncomeTraditional Businesses Maintain

Leading PositionsUnit: RMB 100 million Unit: RMB 100 million

14

206186

126

228 217

159

Settlement & clearing

Agency services

Bank cards2012

2013

New Businesses Keep Growing


160

22

54

25

164

27

66

33

Consultancy & advisory

Credit commitment

Electronic banking

Custodian & other fiduciary

services

20122013

688

748

832

2011 2012 2013

15


Costs and Expenses: Cost-to-Income Ratio Posts Year-on-

Year Decline

Expense Growth Remains Slower than

Operating Income Growth & Net Profit GrowthCost-to-Income Ratio

15

20.9%

15.7%

8.9%

29.9%

11.9%

9.6%

28.5%

19.0%

14.5%

2011 2012 2013

Growth rate of cost & expense

Growth rate of operating income

Growth rate of net profit

35.9%

36.8%

36.3%

2011 2012 2013

16


Asset Quality: Remains Solid

NPL Ratio Continues to Decline


16

Both Balance and Ratio of Special

Mention Loans Continue to DeclineUnit: RMB 100 million

874

858

878

1.55%

1.33%1.22%

2011 2012 2013

NPL balance NPL ratio

3,147

2,955

2,763

5.58%

4.59%

3.82%

2011 2012 2013

SML balance SML ratio

17


Risk Management: Provision Coverage Keeps Improving

and Credit Costs Decline Steadily

Credit Costs Continue to DeclineProvision Coverage Ratio Increases

Steadily

17

263.1%

326.1%

367.0%

4.08%

4.35%

4.46%

2011 2012 2013



1.17%

0.90%

0.76%

2011 2012 2013

18


Capital Adequacy: In Line With Regulatory Requirements

Core Capital Adequacy Ratio (by the old rule)

Total Capital Adequacy Ratio (by the old rule)

18

Capital Adequacy Ratios In Line With Interim

Regulatory Requirements (by the new rule)

9.50%

7.50%

11.86%

9.25%

CAR Tier-1 CAR

Interim requirements for 2013 ABC's CAR

9.50%

9.67%9.81%

2011 2012 2013

11.94%

12.61% 12.57%

2011 2012 2013

Note: The new rule refers to the Capital Rules for Commercial Banks (Provisional), and the old rule refers to the Rules

for the Management of Capital Adequacy Ratio of Commercial Banks.

19



Results Overview

Future Outlook



19

20


County Area Banking Business: Improving Profitability with

Increasing Contribution to the Bank’s Total Profit

20

High Growth in Pre-Tax Profit


Deposit-loan Spread of County Area

Better than Bank Average

557

637

772

35.2% 34.0% 36.1%

2011 2012 2013

Pre-tax profit of county area banking business

% contribution to total profit

4.94%5.11%

4.76%4.51% 4.57%

4.25%

2011 2012 2013

County area Bank

21


Significant Differentiated Competitive Advantage and

Strong Momentum of Business Growth

Above-bank-average Loan Growth with

Increasing Share

Increasing Share of County-Area

Personal Deposits

21

Stable Share of County-Area Demand

Deposits

17,515

20,492

23,480

31.1%31.9% 32.5%

2011 2012 2013

County-area loans % of bank total


65.7% 66.5% 67.3%

58.5% 59.1% 58.6%

2011 2012 2013

Personal deposits as % of county-area deposits

Total personal deposits as % of bank total deposits

58.2%56.7% 55.9%56.7%

54.6% 54.6%

2011 2012 2013

Demand deposits as % of county-area deposits

Total demand deposits as % of bank total deposits

22


Continuous Improvement of Asset Quality

NPL Ratio of County-Area Banking

Business

22

Sufficient Provisions for County-Area

Loans

Credit Costs Decline Steadily

1.41% 1.36%

1.07%

2011 2012 2013

1.55%

1.33%1.22%

1.96%

1.66%1.54%

0.41%

0.33%

0.32%

2011 2012 2013

Bank NPL ratio

County-area NPL ratio

Difference in NPL ratio between Bank and County Area

241.78%

315.99%352.85%

4.75%

5.24%

5.44%

2011 2012 2013



23


Future Outlook

Results Overview




23

24


县域业务实现差异化发展，将农行建设成

为一流的现代商业银行

Future Outlook

24

县域业务

24

Achieve differentiated development

through leveraging competitive advantages

and innovative capabilities to build ABC into a

first-class modern commercial bank

County-Area

Banking Business

To consolidate the leading

position in county-area

financial services by

deepening the reform of the

County Area Banking

Division, capturing the

opportunities arising from

urbanization, setting up

diversified channels, and

earnestly servicing the

agricultural value chain, the

agricultural business

system and people’s

livelihood.

Corporate

Business

To speed up the

transformation into an

“Investment-banking-

oriented” business by

coping with interest rate

liberalization

actively, enhancing

intermediary services in

asset management and

financing advisory, and

focusing on cross-selling

and product

development.

Financial services

to SMEs

To provide premium and

comprehensive financial

services to the customer

base centered around the

value chains, commercial

hubs, specialized markets,

industrial zones and

clusters of trade groups

with a clear market

positioning.

Internet-based

Finance

To build a mobile

finance ecosystem

centered around

banking by establishing

an application-oriented

big data system;

expanding mobile

service

channels, speeding up

product innovation and

enhancing cooperation

with third-parties.

International

Finance

To drive the globalization

of products and services

by closely following the

trends of RMB

internationalization and

globalization of domestic

businesses, improving

the cross-border system

and clearing platform of

RMB products, and

exploring innovative

financing channels.

25


Thank you!

Q&A

25

Documents

2013 Annual Results Announcement · 3 alpha2014\Presentations to client\2014-03-17 2013 Results Announcement\EN_2013年度业绩推介- Revised.pptx Financial Summary (1): Balance